In a medium bowl or glass measuring cup, whisk together the milk, egg, and vanilla. Add the wet ingredients to the dry ingredients and mix just until combined.

Peel and core the apple. Coarsely grate half the apple and cut the other half into 1/4-inch pieces. Gently fold the apple into the batter.

Fill a large saucepan with 2 inches of oil and heat to 375 degrees F. Set a cooling rack in a rimmed baking sheet. Working in batches, drop small spoonfuls of the batter into the oil and fry until golden brown on all sides, 2 to 3 minutes. Transfer to the rack and let cool for 5 minutes. While warm, toss the fritters in the cinnamon-sugar mixture. Serve with whipped cream, if desired.

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